Inflation in Singapore
Singapore - Inflation
Inflation ticks up in April, but core inflation hits a one-year low
Consumer prices decreased 0.3% over the previous month in April, following the 0.1% fall recorded in March. According to data released by Statistics Singapore, the decline was primarily caused by lower prices for housing and utilities and clothing and footwear, which was partially offset by higher prices for transport.
Inflation accelerated to 0.8% in April, up from March’s 0.6% and matching analysts’ expectations. Meanwhile, annual average inflation ticked up to 0.6% in April from 0.5% in March.
In contrast, the Monetary Authority of Singapore’s (MAS) core inflation measure, which omits the costs of accommodation and private road transport, edged down to 1.3% in April (March: 1.4%). The reading matched market analysts’ expectations and marked a one-year low. The dip was likely partly due to the launch of the Open Electricity Market (OEM), which has depressed electricity prices.
Commenting on April’s print, economists at Nomura noted that higher prices for oil and vehicle registration permits “pose some upside risks to our 2019 headline inflation forecast of 0.3 (2018: 0.4%)”. However, they also added that: “We see downside risks to our core inflation forecast of 1.5% (2018: 1.7%), as demand-side conditions remained weak amid rising external headwinds and domestic structural constraints – high debt and deteriorating demographics.”
Looking ahead, our panelists see inflation rising on the back of the recent uptick in oil prices and stronger wage pressures. That said, they still see inflation remaining mild overall, dampened by the impact of the OEM, tepid economic growth and the MAS policy tightening last year.
In 2019, the MAS expects CPI inflation to average between 0.5% and 1.5%, and core inflation to average between 1.0% and 2.0%. Met the why particular Consensus Forecast panelists, meanwhile, expect CPI inflation to average 0.9% in 2019, which is unchanged from the previous month’s forecast. In 2020, our panel expects average inflation of 1.4%.
Singapore - Inflation Data
|Inflation Rate (CPI, annual variation in %)||2.4||1.0||-0.5||-0.5||0.6|
5 years of economic forecasts for more than 30 economic indicators.
Singapore Inflation Chart
Source: Singapore Department of Statistics and Met the why particular calculations.
|Bond Yield||1.96||1.39 %||Jun 13|
|Exchange Rate||1.37||-0.01 %||Jun 13|
|Stock Market||3,221||0.18 %||Jun 13|
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June 4, 2019
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) ticked down to 49.9 points in May from 50.3 in April, registering the worst reading since August 2016.
May 23, 2019
Consumer prices decreased 0.3% over the previous month in April, following the 0.1% fall recorded in March.
May 21, 2019
Comprehensive national accounts data released on 21 May showed that the economy slowed by marginally more than previously estimated in the first quarter.
May 17, 2019
Non-oil domestic exports (NODX) decreased by 11.0% year-on-year in April, slightly less than March’s 11.8% drop.
May 4, 2019
The manufacturing PMI produced by the Singapore Institute of Purchasing and Materials Management (SIPMM) ticked down to 50.3 points in April from 50.8 points in March, marking the weakest reading since November 2016.